Moving to Texas in 2025: Complete Cost of Living & Tax Guide

Introduction

Texas offers no state income tax, big job markets (tech, energy, healthcare, logistics), and diverse cities from Austin and Dallas–Fort Worth to Houston and San Antonio. But costs vary widely by county and neighborhood—especially property taxes and home/auto insurance. This guide gives you a repeatable method to compare Texas cities against your current location so you can move with confidence.

Key Takeaway

Don't compare gross salary or list rent alone. Compare after-tax income minus Texas-specific costs(property tax, insurance, utilities, tolls, HOA/MUD taxes). Use our calculators to find your break-even salary and best city fit.

Understanding the Basics

Key Terms Explained

No State Income Tax: Texas does not tax wages. You still pay federal income tax and FICA.
Sales Tax: State base + local add-ons; many cities total up to ~8.25% at checkout.
Property Tax & Appraised Value: Counties tax appraised value × combined local rates (county/city/school/MUD). Effective rates vary by neighborhood.
Homestead Exemption: Primary-residence relief and appraisal-growth limits; file after you move in.
MUD/SUD/PID: Special districts (often in new suburbs) with extra line-item taxes/assessments—check the property tax statement.
Home & Auto Insurance: Wind/hail, flood risk, and urban traffic can make premiums higher than expected.
Electricity Market: Many ZIPs have retail choice (shop plans); others use municipal/co-op utilities.
Toll Roads: DFW, Austin, Houston have extensive toll networks—budget for tags if you'll commute by car.

Step-by-Step Guide

Use this checklist with the Cost of Living and Mortgage calculators for apples-to-apples comparisons.

1) Pick cities and set a target salary

Choose 2–3 Texas metros (e.g., Austin, DFW, Houston, San Antonio). Enter your offer or target salary and filing status in the Take-Home calculator (remember: no TX wage tax).

2) Model housing the Texas way

Renting: Price by neighborhood tier (downtown vs inner-ring vs suburbs). Add utilities, parking, pet rent.
Buying: Use the Mortgage calculator with realistic property tax (ask for last year's bill and expect adjustments to your purchase price), homeowners insurance, HOA, and—if applicable—MUD/PID taxes.

3) Add recurring Texas costs

Sales tax on purchases; home insurance (wind/hail deductible), flood insurance if in a floodplain; auto insurance, inspections/registration, toll tag budget; electricity plan by kWh and usage; childcare/school differences.

4) Compare net monthly surplus

For each city, compute: after-tax income − total monthly expenses = surplus. Sort by highest surplus and lifestyle fit.

5) Run scenario tests

Rent vs buy • roommates vs solo • car-heavy suburb vs urban core • commute with vs without tolls. Test ±10–15% changes to home price, insurance, or utilities to see sensitivity.

6) Negotiate your move

Use your model to request relocation credits, temporary housing, closing-cost help, or a rate buydown if buying.

Model Your Texas Move with Real Numbers

After-tax income, housing + property tax, insurance, utilities, and tolls—side by side.

Open Cost of Living Open Take-Home

Advanced Strategies

File Homestead ASAP: Lowers taxable value for your primary residence and can cap future appraisal increases (subject to rules).
Appeal/Protest Appraisals: Many counties allow annual protests—prepare comps and evidence after your first bill arrives.
Mind the District Lines: Newer subdivisions may carry MUD/PID taxes—compare total tax rate, not just price.
Insurance Shopping: Quote wind/hail deductibles and consider impact-resistant roofing credits; bundle home + auto.
Electricity Plan Fit: In retail-choice areas, pick plans that match your usage curve (flat-rate vs time-of-use).
Toll Optimization: Map a toll-free route before signing a lease; everyday toll commutes can equal $100–$250+/mo.
Remote Work Residency: TX residency can be favorable for remote workers—confirm employer withholding and any out-of-state nexus rules.

Common Mistakes to Avoid

Warning: These oversights can erase your tax savings.

Assuming "no income tax" = cheapest. Property tax + insurance + utilities can offset wage-tax savings.
Using last owner's tax bill at face value—your purchase price can reset appraised value upward.
Ignoring special districts—MUD/PID assessments add hundreds per month in some areas.
Under-budgeting for cars—long commutes, tolls, and higher auto premiums surprise many movers.
Skipping flood checks—flood insurance is separate and may be required by lenders.
Choosing the wrong electric plan for your usage pattern.
Not filing Homestead or protesting when justified—leaves money on the table.

Frequently Asked Questions

Is Texas always cheaper than my current state?

Not always. You'll save on income tax, but some areas have higher property taxes and insurance. Run a full monthly budget per city.

Which Texas city is most affordable?

It depends on job location and housing. San Antonio and many DFW/Houston suburbs often run cheaper than central Austin. Neighborhood choice matters more than the metro name.

How big are Texas property taxes?

Effective rates vary by county, city, school district, and MUD/PID. Compare the actual tax rate × appraised value for the address you're considering.

Do I need flood insurance?

If a home is in a FEMA special flood hazard area, lenders will require it. Even outside mapped zones, consider coverage—Texas storms can be unpredictable.

How do electricity plans work?

In many areas you can choose a provider and plan. Use your expected monthly kWh to compare all-in cost (base fee + energy charge + tier thresholds). In municipal/co-op zones, the local utility sets rates.

What salary do I need to move from CA/NY to TX?

Use the Break-Even Salary in our Cost of Living tool. It converts your current lifestyle to a Texas city, factoring taxes and prices.

Conclusion & Next Steps

Texas can stretch your paycheck—but only if you model all-in costs. Compare after-tax income, housing + property tax, insurance, utilities, and transportation before you sign.

Action Items

Enter your current city and target Texas metros in the Cost of Living tool.
Price rent vs buy with actual property tax, insurance, HOA/MUD numbers in the Mortgage calculator.
Map your commute and estimate tolls/fuel/parking.
If buying, plan to file Homestead and note the appraisal protest window.
Use your model to negotiate relocation or salary.

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